Residential contractors in Iowa must comply with a wide range of laws and regulations governing their work. It is important for residential contractors to be aware of their legal requirements to ensure compliance and avoid costly penalties. Lost in the numerous legal requirements are a few laws that residential contractors may unintentionally overlook. An introduction to these three legal requirements is below. We have developed a detailed informational guide, Legal Requirements Specific to Residential Contractors (PDF), to better aid residential contractors in fulfilling their legal obligations.
Legal Requirements Specific to Residential Contractors
Iowa’s Right to Cancel Law
The first is Iowa’s right to cancel law. Found in Iowa’s Door-to-Door Solicitation Act in Iowa Code Chapter 555A, a residential contractor who engages in a “door-to-door sale” of “consumer goods or services” must include a statutorily required sentence in the contract and provide the customer with a specific notice and cancellation form at the time of contracting.
Iowa’s Notice of Contract Obligation on Insurance Jobs
The second is Iowa’s notice of contract obligation on insurance jobs—that is, repair projects where the customer has filed a claim with his or her property insurer to cover the repair costs. Iowa Code § 103A.71 requires residential contractors, who are contracting with customers to perform home repair damage from weather, fire or other catastrophes, to provide the customer with a specific notice outlining the customer’s contract obligations and rights.
Iowa’s Prohibition on Acting as an Unlicensed Public Adjuster
The third is Iowa’s prohibition on residential contractors acting as public adjusters on insurance projects. In sum, under Iowa Code § 103A.71(3), residential contractors, on behalf of owners, cannot negotiate insurance claims in connection with the residential contractors’ work, as they would be operating as a public adjuster without a license. See also Iowa Code § 522C.4(1).
It is important that residential contractors know the law regarding the unlicensed practice of public adjusting. In October 2025, a residential roofer was arrested in Polk County for acting as a public adjuster without a license. Talk to your attorney if you have questions about this prohibition for residential contractors.
If you have questions regarding any of these requirements, please contact Jodie McDougal at jmcdougal@fredlaw.com.
ShareholderJodie is a construction and real estate attorney who handles both litigation and transactional matters for her clients within the construction, real estate and landlord/leasing industries in Iowa and beyond.
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